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MONEY, KIDS


Kids Spend Smarter With Parents' Help

Teach Your Kids About Money Sooner Than Later

UPDATED: 12:44 pm EDT July 10, 2008

Sooner or later kids -- yes, your kids -- should learn the value of a dollar.

These days, with $4 gas running neck and neck with $4 milk -- the sooner the better.

As spring turns to summer, here are five areas where your offspring could gain some ground when it comes to being financially sound:

Get A Job

Welcome to the no-brainer paragraph. Is there a better way to teach youngsters the way of the world than to actually have them enter the work force?

John Evans, 16, resisted this notion for as long as he could. But with his driver's license came the car and now the notion of buying gas. Solution: Job. "I don't make much, but at least I don't ask my parents for every penny anymore," said Evans, who stocks hardware store shelves.

The important component is to get kids to realize that their first job may not be their dream job. The idea is very Nike: Just do it.

Allowance With A Purpose

Some households contain children who simply can't work: They're tied up with activities (baseball, dancing, soccer, etc.) or the kids are too young. For many, that means the A-word: Allowance.

How much kids get and what it should be tied to varies from household to household. Some experts say a good idea is to use allowance as a reward for good behavior. Others say it should be tied to household chores. One idea -- allowance with a purpose -- embraces both ideas.

For example, let's say Jimmy gets $20 a month. Take that cash, put it in a cup at the first of the month. If Jimmy goes out of his way and goes "above and beyond" around the house, perhaps a parent tosses in an extra dollar for every good deed. Conversely, if Jimmy brats it up, delete that same amount from the pot. In the end, Jimbo ends up with what he deserves -- just like real life.

Share, Save, Spend

Through jobs or allowance or gifts or whatever, cash can pile up for a kid. That's where Nathan Dungan comes in. He's a nationally recognized kids and money financial expert who developed what he calls the “Share, Save, Spend” program.

Dungan fiercely believes that sharing should be the first component of a young person's handling of money. Dungan says a youngster should learn early to save as much as possible. It's never too early to build that nest egg. When sharing and saving are satisfied, then he gives the green light to spend -- within reason.

The principles, according to Dungan, teach kids to be worldly and responsible, and not free-spending robots manipulated by the mass media.

Your Kids Can Save You Money

There's nothing wrong with showing a child a household bill. It should not be a mystery as to what the grownups spend the bulk of their money on.

For example, if Sally is shown exactly how much is spent on electricity -- will she do her best to shut off a light when it's not in use?

If Jimmy is shown exactly how much is spent on groceries, will he embrace more generic foods, which can cost much less?

Your kids can save you money. Especially when certain money mysteries are explained.

Let Them Be Kids

Will Dahl, 11, loves to collect toy action figures. He says he has about 400 superheroes and wrestlers scattered about his house. He says he shares and saves, but when it comes to spending -- he doesn't always want to be nagged about it.

"I like action figures," Dahl said. "They're fun."

These days, Dahl says he buys the bulk of his toys with his own money -- which is primarily given to him through gifts. He does not have a job. He does not get an allowance. At 11, he says he still gets excited when a figure he wants shows up at the local Target or Wal-Mart store. For these items, his money sometimes jets out of his pockets with Iron Man force. Should he feel guilty for spending money? He doesn't think so. He's just a kid -- and he's buying stuff that he likes.

"I'm a good kid and for the most part I do what I'm supposed to do," he said. "Besides, it's my money."

Let them be kids? With $4 gas competing with $4 milk, it may be the bright spot of your day.




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